Tejas Networks Reports Strong Q3 FY24-25 Results Amid Rising Borrowing Costs and Liquidity Concerns

Tejas Networks, a midcap player in the IT hardware sector, has recently released its financial results for the third quarter of FY24-25, announced on January 23, 2025. The company reported net sales of Rs 2,642.24 crore, showcasing a notable year-on-year growth. Profit Before Tax (PBT) reached Rs 197.53 crore, reflecting a significant increase compared to the previous year. Profit After Tax (PAT) also saw a substantial rise, reaching Rs 165.67 crore, indicating strong performance in this period.
However, alongside these positive financial metrics, Tejas Networks faces some challenges. The company reported a half-yearly interest expense of Rs 123.77 crore, which shows an upward trend from the previous period, suggesting rising borrowing costs. Furthermore, cash and cash equivalents have decreased to Rs 127.64 crore, marking the lowest level in the last six half-yearly periods, which may raise concerns regarding short-term liquidity. Additionally, the debt-equity ratio has reached 0.78 times, the highest in five half-yearly periods, indicating a greater reliance on borrowing to support its operations.

In light of these developments, there have been evaluation changes regarding Tejas Networks, reflecting the complexities of its current financial landscape.

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